Bank Millennium has signed a deal to buy 99.79 percent in Euro Bank from Societe Generale for PLN 1.833 billion (EUR 425.15 mln), Bank Millennium said in a statement. Bank Millennium expects to complete Euro Bank’s takeover in the second quarter of 2019.
Synergies will come mostly on branch network optimisation, but with a potential risk of client outflows, and on back office consolidation, including IT. The bank expects around PLN 650 million (EUR 150.75 mln) in cumulative synergies over five years and PLN 350 mln (EUR 81.18 mln) in integration costs, mostly in 2019-2020.
Euro Bank has 250 branches and 251 franchise branches, 1.4 million retail clients, including 165,000 active users of internet banking and 154,000 active users of mobile banking.
The transaction requires regulatory approval.
